Big Box Inflaton

Sometimes I never leave
But sometimes I would
Sometimes I stay too long
Sometimes I would
--Motels

Operators of 'big box' stores are beneficiaries of inflationary policies. As inflation goes up, purchasing power goes down. To get more out of each dollar, consumers increasingly shun small mom and pop store in favor of large operators capable of creating high volume, low variety economies.

Stated differently, monetary policy has shifted demand away from the small toward the large.

Since the Federal Reserve was created 100 years ago, the purchasing power of the dollar has declined by more than 95%.

There can be little doubt that the structure of retail industries would look much different today had we not been engaging in policies that have destroyed the value of the dollar for the last century. Industries would be less concentrated and there would be more demand for goods and services sold by local, customer-friendly operators.

A compelling argument can be made that the extinction of the corner drug store and other small retailers is being driven not by market competition but by the force of monetary policy. This policy has been a form of corporate welfare for big box operators.

Remove this welfare and watch retail become more up close and personal.